Shares of Lucid Group Inc (NASDAQ: LCID) are soaring 5.26% in Friday's trading session, following a significant upgrade from Morgan Stanley. The electric vehicle manufacturer's stock received a boost after analysts recognized its potential in artificial intelligence and strategic partnerships.

Morgan Stanley upgraded Lucid from Underweight to Equal-weight, maintaining its $3 price target while outlining a $10 bull case. Analyst Adam Jonas highlighted Lucid's promising AI strategy and its role in developing domestic EV manufacturing as a platform for AI integration. The firm now sees a more balanced risk profile for the company and doesn't anticipate any unexpected negative surprises in upcoming earnings reports.

The upgrade also emphasized Lucid's potential to navigate geopolitical challenges effectively. Morgan Stanley believes that recent leadership changes could enhance the company's ability to secure capital and forge partnerships across both Western and Chinese markets. This positive outlook on Lucid's strategic position and AI capabilities appears to be driving investor enthusiasm, resulting in the significant stock price surge observed today.